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	Chicago Archdiocese Paid $100M in Sex Abuse Claims: Church Report By Robert Herguth Chicago Business March 4, 2009 http://www.chicagobusiness.com/cgi-bin/news.pl?id=33196 (Crain's) — Sex abuse claims have cost the Catholic Archdiocese of Chicago almost $100 million this decade, a church financial report shows. The sum reflects lawsuit settlements, attorney fees and other costs paid out since mid-2000, including $15.8 million in claims settled since the church's current budget year began last July, according to the recently released report. Settlements, including those paid last year involving former priest Daniel McCormack, are being funded through bank loans, property sales and insurance, church officials said. A number of additional lawsuits are still pending. The disclosure comes amid a declining economy in which many non-profit organizations are struggling. A top church financial adviser acknowledges financial pressures and said the archdiocese, one of the largest employers in Chicago, is looking at belt-tightening. "We're obviously nervous like everyone else, but so far people seem to be placing a high degree of importance on supporting the church" through contributions, said James Denny, vice-chairman of the archdiocese's finance council, which advises the cardinal. Mr. Denny said the church is identifying expenses that can be cut without hurting "the muscle' of operations. The archdiocese encompasses 2.3 million Catholics in Cook and Lake counties, 363 parishes, more than 250 schools and about 7,800 full-time employees. The church doesn't expect to make across-the-board cuts in programs or employees, he said. "I think we'll be able to come through this period pretty much in tact without any drastic action," said Mr. Denny, a retired Sears Roebuck & Co. executive. The archdiocese took in $1.09 billion from its parishes, schools and services in its 2008 budget year, ended June 30 (the most recent figures available), a 2% increase over the previous year. But expenses exceeded that revenue by $25.8 million as the cost of running schools and charitable programs increased. The church's cash on hand declined 9% to $124.6 million as of June 30. Its investment portfolio was $1.36 billion, down 3% from the prior year. A decline in the church's stock holdings was offset by alternative investments, including private equity. The investment figures don't reflect the stock market meltdown that began in September. Bank loans taken out for settlements of sex-abuse lawsuits will be paid off when the church sells pieces of its real estate holdings, archdiocese officials said. But the amount of money raised by church property sales dropped in its 2008 budget year, to $3.1 million from $25.9 million in 2007.
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